How to Boost Your Portfolio with Top Construction Stocks Set to Beat Earnings
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Emcor Group (EME) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $2.74 a share, just 29 days from its upcoming earnings release on October 26, 2023.
EME has an Earnings ESP figure of 1.11%, which, as explained above, is calculated by taking the percentage difference between the $2.74 Most Accurate Estimate and the Zacks Consensus Estimate of $2.71.
EME is just one of a large group of Construction stocks with a positive ESP figure. Dycom Industries (DY) is another qualifying stock you may want to consider.
Slated to report earnings on November 28, 2023, Dycom Industries holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $1.78 a share 62 days from its next quarterly update.
Dycom Industries' Earnings ESP figure currently stands at 0.99% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.76.
EME and DY's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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EMCOR Group, Inc. (EME) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
